Essay About Long Wait And Starbucks’ Expansion

Starbucks’ Expansion in Asia
Title: Starbucks’ Expansion in Asia
View Point: Howard Schultz – Director of Retail Operations
Time Context: Present / 1996 Before Starbucks expansion in Singapore
Statement of the Problem
The growth rate of Starbucks in other countries is slowing due to financial crisis, Store Cannibalization and cultural issues
Statement of the Objective
The objective of Starbucks is to increase its market share to other countries
Areas of Consideration
Strengths
Quality coffee beverages
Excellent Customer service
Many Joint Venture Partners
Expands Abroad Extensively
Weaknesses
Expensive products
Store cannibalization
No roasting plants in Asia
Poor merchandising efforts
Opportunities
Brand Extension
Increasing number of foreign countries in Asia
High consumption of coffee
Expanding retail outlets
Threats
Cultural issues in other countries
Financial crisis of foreign countries
Imitation of their product
Heavy competition of its rivals
Alternative Courses of Action
Build a roasting facility in Japan or Singapore to trim down operation cost
Focus on continuous product improvement and avoid store cannibalization
To make the coffee production automatic
Analysis
ACA 1:
Advantages
It will give access to Asian countries on coffee products without the long wait for the shipment from Kent, Washington
Products will be almost readily available to retail stores
Shorter waiting time will avoid coffee products